Peter Grandich took some time from his busy day to talk to us. The real economy isn’t growing. Central banks continue record purchases of gold. The Euro is again under pressure. Inflation is rising and will continue to rise at increasing rates. Peter believes the raging 12 year precious metals bull will continue on unabated. The battle lines are drawn now. We have a conflict starting between the makers and the takers. A kind of Atlas Shrugged scenario is unfolding and once the government grows to 50 percent of the economy, the end game is near. Just look at France!
You'll need to click through for the audio of the interview. Peter covers gold among other financial outlooks.
“...As we discussed last week, fixed income prices and interest rates act in opposite directions. Just like a seesaw, one goes up and the other one goes down. The FINRA announcement could very well be a critical “tell” as to the direction of interest rates. If they are issuing a warning, it could very well mean that the zero-interest rate policy (ZIRP) is finally coming to an end.
"It makes sense. We have been arguing that ZIRP was devastating savers and retirement funds. Retirees and participants in 401K-type plans have been depleting their accumulated balances prematurely. Pension and endowment funds have been earning returns that will cause huge shortfalls or require huge contributions from their sponsors if continued for much longer. For example, the two major California public retirement funds, CALPERS and CALSTRS, recently announced horrendous actuarial shortfalls.
"If we make the assumption that governments and central banks are operating from a plan, the timing is correct. Stocks, bonds and housing have been juiced as much as monetary policy tools can be expected to achieve. The global banking system has been stabilized after the 2008 meltdown. Through massive purchases of toxic assets by governments and central banks from the so-called private sector banks, losses have been sterilized and the system reliquified. Rates were driven to historic lows to allow homeowners to ..."
The outlook for gold has turned profoundly negative. With prices down over 4% since the start of the year, gold is off to the worst start since 2001. Billionaire investors George Soros and Louis Moore Bacon have dramatically slashed their gold holdings and Bloomberg reports that money managers have liquidated gold and precious metal holdings for six straight weeks, the longest stretch of outflows since the first quarter of 2011.
Further confirmation of the bearish outlook on gold investment was provided by Barron's latest survey of America's top financial advisors who manage money for the ultra wealthy. According to Barron's, the "one clear theme" of the advisors for 2013 is an increased commitment to stocks, logically implying that most advisors see a better economy and rising corporate profits. With bond yields reaching all time lows, stock dividends are also able to provide income starved investors with yields unattainable from government debt securities or gold. ...
The rumblings are getting louder by the day. The Indian government is considering more steps to curb gold imports and is looking to put a cap on the purchases of the precious metal to contain the country's swelling current account deficit.
The world's biggest gold importer has been trying to get its population to buy less of the metal and help bring down the country's import bill.
Late January, the government hiked the import duty on gold and platinum to 6% from 4% to curb imports of the precious metal. However, realising that an import duty hike was in the offing, bullion retailers purchased 23% more gold in January this year, ahead of the duty hike. ...
Click through for the rest. But what's clear to me is the attempt to manipulate and get gold out of the hands of people continues in India.
The gold mining business will be looked back on in time as the greatest business opportunity of the millennium. That which polite groups look on today as an investment pariah will outperform the tech stocks of 2006-07 and hold their price levels rather than crashing like a South Sea bubble.
Today you got insight from CIGA Patrick on the essential tool gold has been to central banks, a hint of a final price on gold and why it takes almost a generation to return gold to its rightful owners, the Germans, who have made that request of the US Treasury and Fed. That is an article that you should print, read and re-read as it is essential to your understanding of the Golden End Game.
Lars, our investigative reporter in the field of economics, published a long interview full of good reading and fact, but the following is in my opinion something you must print read and read again.
My purpose is to teach you practical monetary science in terms of the Golden End Game certain to occur and thereby transit you from this time of evolution of money into the future safe and sound. The present reaction of the gold price in the market today is almost comical if you know what is in store and in fact taking place right now.
The mark to market of gold that is taking place on at least half of the globe is the beginning of a ground swell that will in the cash market for gold provide the means of balancing the balance sheets of the worst offenders of the exponential growth in debt up to today and well beyond. ...
click through for the rest of Jim Sinclair's letter.
India's gold demand surged 41% in the fourth quarter of calendar year 2012. World Gold Council (WGC) data showed the countrys demand at 262 tonnes in the quarter, compared with 185.5 tonnes in the corresponding period previous year.
By Dilip Kumar Jha Retail consumers unabated appetite to own an additional piece of gold has so far nullified the governments efforts to curb its import, in order to control the burgeoning current account deficit (CAD).
India's gold demand surged 41% in the fourth quarter of calendar year 2012. World Gold Council (WGC) data showed the countrys demand at 262 tonnes in the quarter, compared with 185.5 tonnes in the corresponding period previous year. Despite the governments four-fold rise in customs duty to discourage gold import, there was only a 12% decline through 2012, at 864.2 tonnes, compared with 986.3 tonnes in the previous year.
Indias gold demand is largely driven by a combination of retail and urban consumers. ...
SAN FRANCISCO (MarketWatch) — Talk of a so-called currency war has been heating up, and it might finally light a fire under gold, too.
Efforts by countries such as Japan to boost growth with massive stimulus programs — which in turn have devalued their currencies, an aid to exports — can benefit prices for gold. These have started to alter the precious metal’s relationship with the foreign-exchange market and expand its role as a safe-haven asset.
“We are now moving irrevocably to a time when gold will measure currencies, not currencies measure gold,” said Julian Phillips, a South Africa-based contributor and founder at GoldForecaster.com. Read: Michael Casey: Japan needs a weaker yen.
Historically, the precious metal trades inversely to the U.S. dollar ...
... Look, you can sit there and worry all you want. Santa's been warning you for days that things were about to get hairy. I warned you last Friday that, with the Chinese New Year, paper selloffs were bound to be more successful this week. The PM "markets" have now been driven to the same extreme oversold levels that we've seen at almost all of the bottoms/lows in the past. Though there may still be some follow-through selling as the momos attempt to take out $1600, who cares? What are you going to do? Convert your metal back into fiat? And if you do, which one? The Pig? The Euro or by extension, the Swissie? How about the yen? That'd be fun.
It all comes down to courage of conviction. Do you believe your own logic and analysis or do you believe CNBS? Do you trust your instincts or do you trust The Fed? I know you get tired of hearing it but here goes (again): You are being presented with a gift. That you can continue to accumulate physical gold and silver at $1600 and $30 is simply astonishing. Let The Forces of Darkness do their evil bidding. Five years from now, a day like today will be long forgotten. Meaningless unless you acted upon your beliefs and used this weakness to add to your stack. ...
click through for all the charts and the rest of the post.
As debate about potential currency wars heats up, commentators including myself have called out the likely losers, the Japanese yen and South Korean won being high on most lists. Much less discussed has been which countries will win from the currency wars. After all, the currency market is a zero-sum game - as one currency declines, another must go up. In this issue, I'm going to suggest that Singapore and to a lesser extent, Thailand and Malaysia, will be relative winners. And I'm also going to explain why some supposed currency safe havens - including Australia, China, Canada, Switzerland and Norway - are unlikely to perform as well.
Now I know that some will point to gold being money and the ultimate winner of the race to the currency bottom. I too am a gold bull and suggest the metal should be a core component of any investment portfolio. Having written about gold on previous occasions though, today the focus will be on currencies. ...
“... I will tell you something else, both of these countries are aware of everything that GATA has alleged for the past 14 years. I went to a conference in the Yukon back in 2005, and one of the guys attending was Putin’s right hand man, Andrey Bykov. Bykov was fascinated at what was being presented. Not surprisingly, the gold price went up about 60% over the next six months. I believe it was the Russians buying, and we are continuing to see them acquiring gold.
The Russians are one of the largest buyers of central bank gold, and they are aware of the true nature of the gold market. Mr. Putin and his associates are saying that if the US dollar gets into a difficult position, those countries which have a lot of gold to back their currencies are going to be in an infinitely better position than those that don’t. ...
In 2012, the top 10 gold producing countries slightly increased their gold output.
According to the United States Geological Survey (USGS) provisional data — updated with the recent official figures for China, Russia and Peru — estimated global gold production rose to 2,700 tonnes in 2012, or 1.4% growth compared to 2011 (2,662 tonnes).
The top 10 gold producing countries mined out about 1,807 tonnes of the precious metal which is 2.4% more than in 2011 (1,765 tonnes).
Click through for the chart and the rest of the piece.
Back on February 6th, a posting of mine said big move in gold coming. I noted my heart said up but my brain thought otherwise. I said the move shall be extensive and also a shakeout to the downside may be needed before any move above $1,700 then $1,800 could occur. It was suggested to refrain from any new gold purchases until we either broke above $1, 700 or tested the lower range of a multi-year trading range between $1,500 – $1,550.
The brain was right but the heart loss. And with that loss the nasty emails intensify while the junior resource portfolio melts away. I lost more money on paper and actual losses in the last 18 months then I ever possess in my life up until two years ago. Sadly, I must be one of the very few on the professional side as hardly a mention of being on the wrong side can be found among newsletter writers, analysts and money managers. Such is life. ...
Iran criticised on Monday a reported plan by major powers to demand the closure of a uranium enrichment plant in return for an easing of sanctions on Tehran’s trade in gold and other precious metals, Iranian media reported.
The Islamic Republic, which says its nuclear programme is peaceful, started building the Fordow plant inside a mountain in secret as early as 2006, to protect it from air strikes.
Last week Reuters reported world powers were planning to offer to ease sanctions barring trade in gold and other precious metals with Iran in return for steps to shut down Fordow.
I have been receiving a fair amount of emails asking my opinion on a recent article chatting up "Gold Backwardation". The unspoken inference from the article is that this is bullish for gold.
Let me state two things before proceeding. Number one - I am a trader and make my living by so doing. If I am on the right side of the market, I make money. If I am not, I lose money. It is that simple.
Johnnie one notes cannot trade and make money because they are only always on one side of a market. IN the case of gold, that means that they are always long. Markets go up and markets go down and if you on the long side of a market going lower crashing through support levels, guess what.... You are losing money, sometimes lots of it. Leverage is your friend on the way up if you are long; it is the grim reaper if you are long and the market is dropping lower and lower.
My advice to those who are using futures to trade gold and are not getting out of losing long gold positions while their commodity trading account is imploding - be prepared to suffer large losses to the extent that your potential career as a full time trader will come to an abrupt and rather inglorious end. You have heard it said by myself and others who do this for a living; "Cut your losses and get out of a losing trade when support levels get violated". That is called sound money management. Failure to do that and instead rely on HOPE is a novice's error. HOPE is not a trading strategy. ...
Today James Turk told King World News that the so-called audit of the Fed’s New York gold “is total rubbish.” He also described this stunning situation as “disinformation or propaganda.” The is the first of a series of written interviews with Turk regarding this incredible development.
Eric King: “James, I have to talk to you about this news about the audit of the Fed’s New York gold. What were your thoughts when you read that?”
Turk: “I saw the news reports and it sounded very interesting. So I thought I would look into it and see exactly what was there, what they completed, and what kind of audit it was. I went into the Treasury website and actually read the Treasury announcement.
I’m really sort of sad to say that despite my thinking this was some interesting news, it actually is total rubbish. I think it was disseminated by the mainstream media just to deceive people (and countries) to think that the gold is really there....
Glad to hear Turk's opinion on this. I saw the artcle this morning too and was like, Really?! But then I saw that they only tested a slim amount.
Gold for immediate delivery was seen trading at $1614.58 an ounce at 12.00 noon Singapore time while US gold was seen at $1614.09 an ounce on the comex division of nymex.
SINGAPORE(BullionStreet): Gold advanced in Asian trade Tuesday as strong physical helped it move away from further from lows reached at the end of last week.
Gold for immediate delivery was seen trading at $1614.58 an ounce at 12.00 noon Singapore time while US gold was seen at $1614.09 an ounce on the comex division of nymex.
In other precious metals, silver for delivery in March rose 21 cents to $30.06 an ounce. Palladium for March delivery jumped $10.10 to $763.25 an ounce, while April platinum rose $16.90 to $1694.60 an ounce.
Analysts however said lack of interest from Western investors and a firm dollar kept a lid on gains. ...
The unpredictable, unthinkable but undeniable, has come to pass. After $6 trillion of additional national debt and trillions more in Fed stimulus, the economy shrunk for the first time in 3 years. So, has money printing worked or not? The money printers will answer with a resounding, “Yes!” Had it not been for the trillions of dollars created out of thin air and injected into every arm of the economy, the economy would have disintegrated long ago. It was the money printing that saved us from losing all of our wealth.
Yup! That was a close one! How close? By some accounts, we were just minutes away from economic Armageddon. For most, that’s a difficult concept to grasp. It’s easy to understand how highly leveraged investors, did lose or could have lost everything. But what about the average person who owns some life insurance, keeps money in a money market, has a few CDs, some savings an annuity and a pension. What about that person? It seems the only risk there, is varying rates of return.
But think about it. Every cent of your paper wealth is invested somewhere by someone in some thing. Go ahead. Go down the list. Do you think the financial institution you gave your money to can provide you a rate of return without putting your money at risk? Even the balance in your checking account is at risk. If you think a bank, any bank, could cash everyone out of their savings and checking, on demand, you are ill-informed. The only way your cash is safe in a bank is if it is in a safety deposit box. Even then, cash rots, as inflation gradually eats away its value.
Put in that perspective, maybe the money printers are right – money printing saved us. God help us if that’s true. If we were really that close to economic Armageddon, guess what? We’re ...
Today renowned money manager Felix Zulauf told King World News, “These are manipulations like we have never seen. Of course the printing of money comes in waves.” Zulauf, founder of Zulauf Asset Management and 20+ year Barron’s Roundtable panelist, also spoke about Germany’s move to repatriate its gold, and the fact that countries are rapidly losing faith in London and the Fed as a place of storage because of suspicions the gold has already been leased out. Zulauf warned, “... this could lead to a tremendous shortage of physical gold.” Zulauf believes this would then create a massive spike in the price of gold.
This is part II of a three part written interview series that will be released on King World News today. In these interviews the legendary money manager discusses why he believes central planners will fail, how this will lead to systemic collapse, gold repatriation, what investors should be doing with their money right now, how they can protect themselves going forward, and much more.
Eric King: “Felix, gold repatriation, we’ve seen that trend. There is a distrust of what’s taken place in London, and at the Fed. Meaning the gold has been loaned out, leased out by the bullion banks. It’s not in the vaults. Countries are getting nervous and saying, ‘Give us our gold.’ This trend that’s happening (with gold repatriation), your thoughts on that?”
Zulauf: “At first it was reported that Germany’s Bundesbank repatriated half of their gold located outside of Germany. Within seven weeks we learned it will be 1/5 of what is outside of Germany, and it will take 7 years. The reason given was because of some swap and contract agreements, etc.. So obviously this tells you that part of the physical gold may be lent out and may not be there where it should be (at the Fed)....
click over for the rest of this interview on King World News. It's Part two of three.
Ghana again denied any involvement in transferring 1.5 tons of gold to Iran.
ACCRA(BullionStreet): Ghana again denied any involvement in transferring 1.5 tons of gold to Iran.
A statement by country's Information ministry said preliminary findings from an on-going investigations has absolved the government from playing any role in the transfer of 1.5 tonnes of gold to Iran.
However, the reports said two Ghanaians,operating under the corporate identity of Omanye Gold Mining Ltd were involved in a transaction to supply gold to one Iranian national.
It said the cargo departed Accra on 31st December 2012 with the goods which was destined for Dubai but was detained in Ataturk International Airport in Istanbul, Turkey on 1st January, 2013 because of claims of questionable documentation. ...
Deny it. Well, Duh! There is some international agreements making it a negative thing to trade with them. What you would expect them to do. Not only that but if they use gold for money that is like a double negative against them. Of course they would deny it. Don't want the central bankers mad at them. That would really be bad.
Nepal Gold and Silver Dealers Association said import value of gold shot up by double digit during the six-month period even though daily imports of gold through formal channel remained unchanged at 15 kg.
KATHMANDU(BullionStreet): Nepal imported 14.38 percent more gold during the first half of this fiscal as against the same period of last fiscal year.
According to Nepal Trade and Export Promotion Center, the nation imported gold worth Rs 13.28 billion in the six-month period to mid-January as against Rs 11.61 billion recorded in the same period last year.
The Center attributed the hike to international price hike of the precious yellow metal and depreciation of Nepali currency. ...
Now why in the world would they want gold, hmmm? LOL
U.S. gold exports to Hong Kong has been steadily increasing in the past several years as wealthy Asian individuals looked to diversify their portfolios into gold.
WASHINGTON(BullionStreet): Asia accounted for a major part of the 20 tons gold exported from the US, highest total and the biggest month-on-month jump in U.S. private gold exports since September 2011.
According to US Commerce Department gold exports played an important role in narrowing the shrinking trade deficit during the month of December.
Country's exports of non monetary gold, which excludes central bank transactions, soared by 43 percent to $4 billion in December from the previous month. ...
Put that in your pipe and smoke it. Oh weight. You mignt have a problem find some shortly.